SOURCE: Looking Glass Investments

Looking Glass Investments

November 11, 2013 06:00 ET

GCI Backs Investment Firm, Looking Glass, With Innovative Approach to Peer to Peer Lending

MILWAUKEE, WI--(Marketwired - Nov 11, 2013) - GCI announces a strategic investment in Looking Glass Investments (LGI). Founded in January 2012, LGI invests in promissory notes from borrower members of the two largest peer to peer online lenders in the United States: Lending Club Corporation and Prosper Marketplace. LGI is currently managing $1.25M and plans to have $3M under management by the end of 2013. The Company integrates skillfully developed proprietary predictive analytics with proven technology to evaluate investment opportunities and provide double digit returns. In 2014, LGI will manage a fund for accredited investors. GCI's support aligns with its philosophy to promote sustainable partnerships with companies deploying innovative approaches to existing markets.

The growth of peer to peer (P2P) lending over the past eight years, including throughout the recent recession, proves that the model is here to stay. Founded in 2005 and 2007 Prosper and Lending Club have together originated more than $3 billion in notes and they are on pace to grow over 100% this year.

Matt O'Malley, co-founder and President of LGI, stated, "Lending Club and Prosper have replaced the traditionally complex and expensive borrowing process and the result is more affordable credit. Distribution of risk, disintermediation, direct investment in people and small business; this is pure financial innovation and we are proud to be institutional partners with these transformational firms."

LGI's proprietary process involves the collection of data from the online lenders and other sources which contain hundreds of characteristics associated with investment performance and overall macroeconomic conditions. The Company's experts in financial econometrics use exclusive methods to analyze the data and develop advanced empirical models which allow LGI to deliver higher returns. The models are managed by custom software which reviews almost one thousand online investment opportunities every day. If the models approve, the software completes the investment.

The strategic investment from GCI has provided the LGI Predictive Analytics Division, led by co-founder and Chief Economist Dr. Chad Cotti, the opportunity to make significant progress. Dr. Cotti commented, "Our intense focus on research and technology sets us apart from the others investing in this space. With a team of Ph.D. economists and highly sophisticated software supporting our research agenda, we believe we are well positioned to deliver exceptional results for many years."

About LGI
Looking Glass Investments integrates skillfully developed predictive analytics with proven proprietary technology to evaluate investment opportunities. We minimize volatility and offer stable, outsized returns. Our innovative statistical and mathematical methods are researched, developed, and maintained by experts in financial econometrics and allied techniques.

About GCI
As a family-funded private equity firm, GCI is committed to fostering sustainable, mutually rewarding partnerships with passionate people who lead innovative companies. We are dedicated to providing patient capital, vital central-office resources, and ongoing strategic business expertise. With this support system, we relieve our companies from near-term pressures and give them the tools to focus on long-term substantive outcomes that impact all stakeholders, including management, their employees, and the community.

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